Franco Modigliani
Franco Modigliani (June 18, 1918 – September 25, 2003) was an Italian-American economist, and winner of The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel in 1985.
Born in Italy, he left Italy for the US in 1939 because of his Jewish background and antifascist views.
Modigliani, along with Merton Miller, formulated the important Modigliani-Miller theorem in corporate finance.
This demonstrated that under certain assumptions, the value of a firm is not affected by whether it is financed by equity (selling shares) or debt (borrowing money).
He was also the originator of the life-cycle hypothesis, which attempts to explain the level of saving in the economy.
Modigliani proposed that consumers would aim for a stable level of income throughout their lifetime, for example by saving during their working years and spending during their retirement.
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18 June | 18th June | 1918 | 1985 | 2003 in memoriam | 25 September | 25th September | Bank of Sweden Prize | Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel | Bank of Sweden Prize in Economics | Deaths in 2003 | Economists | June 18 | June 18th | List of business theorists | List of economists | List of people (business) | List of people by name: Mo | M.I.T. | MIT Sloan | MIT Sloan School of Management | Massachusetts Institute of Technology | Massechussetts Institure of Technology | Miller | Modigliani-Miller theorem | NobelPrize/EconomicSciences | Nobel Memorial Prize in Economics | Nobel Prize/Economics | Nobel Prize for Economics | Nobel Prize in Economic Sciences | Nobel Prize in Economics | Prize in Economics | September 25 | September 25th | Sloan School of Management | Swedish Bank Prize | The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel
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